Title says it. Apparently lemmy devs are not concerned with such worldly matters as privacy, or respecting international privacy laws.
Oh no, that’s not even the half of it. The admin for your instance has access to literally anything on their server, including passwords afaik. If you want privacy, this ain’t it chief.
They have access to your password hash, effectively the “infrastructure” admin(s) as I’ll call it (not admins of the site - they need to have access to the actual system that is running the instance) have access to the same things that infrastructure admins of another site would have.
including passwords afaik
Nobody has access to passwords. They have access to password hashes, which are not the same thing. It would be the absolute most half baked of solutions to still be saving passwords in cleartext.